Skip to content

NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to Securities Broking Operations

A client, Ms. Nair, receives a contract note for trades executed on Monday. By when must the broker issue the contract note to the client under the exchange/SEBI requirement?

The broker must issue the contract note within 24 hours of trade execution, in paper or authorised electronic form. Delaying it by days or until the month end, or issuing it only on request, is not compliant with exchange and SEBI requirements.

  1. AWithin 24 hours of the execution of the tradesCorrect
  2. BWithin 7 days of trade execution
  3. CAt the end of the month
  4. DOnly when the client asks for it

Explanation

Brokers must issue contract notes to clients within 24 hours of the execution of trades, in physical or electronic form as permitted. A 7-day or monthly timeline is too late, and issuing only on request breaches the rules.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Securities Broking Operations shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Securities Broking OperationsFree diagnostic mock

More Introduction to Securities Broking Operations questions